The global cryptocurrency market witnessed a broad downturn today, with total market capitalization falling by 2.47% to $3.32 trillion, as major assets bled red across the board. Bitcoin dropped 2.3%, Ethereum shed 4.5%, XRP lost 3.24%, and Solana slid 4.9% against the U.S. dollar.
But it was Dogecoin that took the steepest plunge among the top ten, tumbling 5.9% in a single day. Over $320 million in bullish bets were wiped out within a single hour, signaling a harsh wake-up call for overly optimistic traders.
BTC & ETH in Red, Altcoins Hit Harder?
Bitcoin bore the brunt of the crash, with nearly $317 million in long positions liquidated in a day. The majority, over $306 million, were long bets. Prices slid nearly 4% in 24 hours, pulling BTC below $104K. While it’s still holding a 5% gain for the week, the momentum shifted after it peaked above $110,000 on Tuesday. One massive $201 million long on Binance alone got rekt in the plunge, according to CoinGlass data.
Meanwhile, ETH fell over 6% on the day, crashing down to $2,650. Despite this drop, it’s still up about 9% on the week, thanks to an earlier surge. Daily liquidations for ETH totaled $151 million, second only to Bitcoin.
While altcoins like Solana, XRP, and Dogecoin were hit next, as bearish pressure swept across the altcoin market. Solana tumbled over 6% to $152.80, XRP dropped 4% to $2.20, and Dogecoin was the day’s worst performer, down 7% to $0.181. DOGE’s steep fall makes it the biggest loser among the top ten cryptocurrencies.
A Geo-Connect?
Crypto took a hit today, mainly because of rising tensions in the Middle East. Reports say Israel launched an airstrike on Iran’s nuclear site, which scared global investors. Many rushed to safer options like gold, causing it to jump 5%, while risky assets like crypto dropped.
Inflation Data Triggers Profit-Taking
The selling pressure began after the release of the U.S. CPI report on Wednesday, which showed cooling inflation for May. While that might seem like good news, the market reacted with a round of profit-taking, pushing prices down instead. Bitcoin and Ethereum slipped after the report, while altcoins were already struggling earlier in the day, only to see losses deepen by afternoon.
Longs Crushed, Market Dips 5%
In total, the market saw over $713 million in liquidations over the past 24 hours, $650 million of those from long positions. The broader market is now down roughly 5% in a day, according to CoinGecko, with traders rethinking their bullish positions amid rising volatility.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
The crypto market is down due to escalating Middle East tensions (Israel’s airstrike on Iran) and profit-taking after the US CPI report indicated cooling inflation.
Reports of Israel’s airstrike on Iran’s nuclear site sparked global investor fear, causing a rush to safer assets like gold and a sell-off in riskier assets like crypto.
Despite cooling inflation, the US CPI report triggered profit-taking among crypto traders, leading to a market downturn rather than a rally.
Credit: Source link
